The quantitative analysis (excel) is based on a spreadsheet that you will develo

The quantitative analysis (excel) is based on a spreadsheet that you will develop.
THIS IS FOR THE BOEING 787 PROGRAM ONLY (VERSUS THE WHOLE COMPANY) SET IN 2005.
The spreadsheet should be developed to reflect
the timeline of the program, representing the major revenue and expenses of the program. The company
would like the tool to measure an estimated annual cash flow, the NPV and break-even year of the
program. You will need to play with the model to learn about what levers can impede or produce
profitability (positive NPV). You are expected to use sensitivity analysis to help understand
what drives improved profitability. You are expected to clearly identify and document your assumptions
in the model:
* Keep the model simple. Simple is powerful. Start by developing the 787-program model for
the base case. It should have an NPV +/- $3B. If it is outside of this range, check your assumptions and formulas…
* You can use the Tesla (Optional) spreadsheet example as your framework
* I should be able to understand your model – organize clearly & document your assumptions.
* Be consistent in your units used. It is easiest to put all in millions (e.g., $1 billion = $1,000
million)